The job cuts are expected to take place over the coming week as part of efforts to simplify the company’s organisational structure, improve efficiency and strengthen its business operations.

According to reports, PepsiCo North America Chief Executive Officer, Ram Krishnan, informed employees about the planned restructuring in a letter on Monday, November 9, 2026.

In his message to workers, Krishnan explained that the company needed to become more efficient and improve coordination across its operations.

He wrote:

“We have a clear ambition for PepsiCo North America: to build a stronger, more future-fit business that delivers industry-leading growth.”

He added that the company needed to become faster, more connected and more capable while continuing to invest in its employees, capabilities and brands.

The planned layoffs come as PepsiCo faces growing challenges in its North American market, particularly due to declining demand for soft drinks and weaker sales of its higher-priced snack products.

During the third quarter, beverage volumes in North America declined by 2 per cent, while food volumes remained flat.

The company has also faced increased production costs and changing consumer spending habits, with customers becoming more cautious about purchasing expensive snacks and beverages.

In October, PepsiCo lowered its full-year earnings forecast after reporting continued weakness in its North American operations.

The company, which owns popular brands including Pepsi, Lay’s and Doritos, employed approximately 306,000 people worldwide at the end of 2025, including about 125,000 in the United States.

The latest job cuts form part of a broader restructuring effort aimed at improving productivity and returning the company’s North American business to growth.